Question by Nightflyer: Refinancing mortgage, closing costs, points??
If you have a 5.875% adjustable rate and know it will surely go up next year, should you refinance now at 5.75% fixed with 1 point + closing cost? 50,000 loan.
I plan to stay here at least 10 years.
Answer by upstatecamp
Thats not a bad proposition, but you should consider finding a loan with no points. That may have an interest rate slightly higher, but the point is a sunk cost. If the loan with no points is 1/8 percent higher interest rate, you will be ahead of the game on a cash flow basis for the next 8 years. And if you decide to move in that time, you will have saved money.
What do you think? Answer below!